22 Feb 2021
GLENVAR VAULT CAPITAL LIMITED (IN LIQUIDATION) v FOSTER CRESCENT LIMITED [2021] NZHC 139
- Citation
- [2021] NZHC 139
- Court
- High Court
Default judgment was varied because allowing it to stand would be a miscarriage of justice; on the evidence Foster Crescent paid $659,591.56 to complete the purchase which discharged Glenvar's position in an asset valued at $711,000, producing an undervalue recoverable under s297 of $51,508.44; the buy-back option, although enforceable, was executory and did not constitute value received by Glenvar for s297 calculation; Foster Crescent failed to establish the s296(3) defence because a reasonable person in its position would have had reasonable grounds to suspect Glenvar's insolvency.